Business Commons^™

Linking Service Encounters To Financial Performance: An Extended Approach To Valuation, Carla Yvonne Childers

University of Kentucky Doctoral Dissertations

Managers and researchers have become increasingly interested in linking marketing activities to firm financial performance. That is, they desire to make marketing more financially accountable. One approach to achieving this goal has been to “valuate” customers to determine their degrees of profitability over the lifetime of their relationships with firms. However, traditional customer valuation techniques are largely based on quantitative factors and do not account for softer measures such as a customer’s behavior and performance both during and after service encounters.

Additionally, while customer profitability is commonly valuated, employees are not generally assessed in this manner in profit linkage frameworks. …